Is Invesco Russell 2000 Dynamic Multifactor ETF (OMFS) a Strong ETF Right Now?

Core Insights - The Invesco Russell 2000 Dynamic Multifactor ETF (OMFS) offers investors broad exposure to the small-cap blend market segment, having debuted on November 8, 2017 [1] - The ETF industry has been traditionally dominated by market capitalization weighted indexes, but smart beta strategies are gaining traction among investors seeking to outperform the market through stock selection [2][3] Fund Overview - Managed by Invesco, OMFS has accumulated over $239.4 million in assets, positioning it as an average-sized ETF within its category [5] - The fund aims to match the performance of the Russell 2000 Invesco Dynamic Multifactor Index, which selects stocks from the Russell 2000 Index, representing 2,000 small-cap companies in the U.S. [6] Cost Structure - OMFS has an annual operating expense ratio of 0.39%, which is competitive within its peer group, and a 12-month trailing dividend yield of 1.30% [7] Sector Allocation and Holdings - The fund's largest sector allocation is to Financials at 28.1%, followed by Industrials and Information Technology [8] - Sprouts Farmers Market Inc (SFM) is the largest individual holding at 3.44% of total assets, with the top 10 holdings comprising approximately 14.19% of OMFS's total assets [9] Performance Metrics - Year-to-date, OMFS has returned approximately 2.13% and is up about 8.98% over the last 12 months as of July 16, 2025 [11] - The fund has a beta of 1.05 and a standard deviation of 21.10% over the trailing three-year period, indicating effective diversification with around 649 holdings [11] Alternatives - Investors seeking to outperform the small-cap blend segment may consider OMFS, but there are alternative ETFs such as iShares Russell 2000 ETF (IWM) and iShares Core S&P Small-Cap ETF (IJR) that may offer lower expense ratios and risk profiles [12][13]